Boyd to acquire U.S. chain of body shops
Boyd Group Inc (The) BYD.A
Shares issued 6,109,994 Jan 14 close $1.40
Fri 15 Jan 99 News Release
Mr. Terry Smith reports
The Boyd Group, operating principally as Boyd Autobody & Glass, has entered
into an agreement to purchase the shares of Service Collision Center, Inc.
which, with four repair facilities trading under the Service Body Shop name
in Wichita, Kansas, is the largest collision repairer in its marketplace.
Service represents a meaningful entry into the U.S. market and a platform
acquisition into the Midwestern United States. The acquisition of Service
also secures proven senior management to play a key role in Boyd's further
expansion in the Midwest market.
The total annual revenues of Service's four locations are approximately
$8.3-million which, when combined with existing operations, will increase
Boyd's annualized gross revenue to nearly $50-million.
The purchase price for this acquisition, which is undisclosed, will be
satisfied through the combination of cash, vendor notes and shares.
Approximately 288,500 Class A shares of Boyd will be issued to the vendor,
representing approximately $460,000 of the purchase price. The purchase is
scheduled to close before the end of January.
Negotiations in respect of Boyd's earlier announced letter of intent to
acquire the assets and business of Collision Specialists, Inc., also of
Wichita, have been terminated. |
